Nikkei drops after weak U.S. jobs data; Sharp soars on funding hope

* Toshiba tumbles after saying it will appoint committee to
investigate earnings
* Tomony Holdings jumps after saying it considers buying
MUFG affiliate
By Ayai Tomisawa
TOKYO, April 6 (Reuters) - Japan's Nikkei share average fell
on Monday as weak U.S. jobs data soured sentiment, but Sharp
Corp jumped after a source said it may spin off its LCD
panel business and seek financing from a government-backed fund.
The Nikkei 225 index dropped 0.3 percent to
19,381.15 points by mid-morning.
The U.S. March jobs report on Friday showed U.S. employers
added 126,000 jobs, well below expectations for a gain of
245,000, according to a Reuters poll of economists.
"The data may suggest a delay in the U.S. interest rate hike
and it's hitting the Japanese markets' mood," said Chisato
Haganuma, chief strategist at Mitsubishi UFJ Morgan Stanley
Securities.
But he added that upcoming earnings results should signal
bright prospects for Japan's economy.
"When corporate earnings are strong and the economy is
resilient, stocks should rise," Haganuma said, adding that
Japanese companies are seen posting a double-digit profit gain
for the current fiscal year ending March 2016.
Japanese companies will release forecasts for the current
fiscal year when they report their full-year earnings for the
year ended March 2015 next month.
Exporters were weak, with Toyota Motor Corp
dropping 0.8 percent and Nissan Motor Co shedding 1.4
percent.
On the other hand, Sharp jumped as much as 6.9 percent to a
1-1/2-week high of 247 yen, after a source said it may spin off
its LCD panel business and seek funding for it from the
government-backed Innovation Network Corporation of Japan
(INCJ).
Toshiba Corp dropped as much as 10.7 pct to 466.3
yen, the lowest since Feb. 3, after the company said it would
appoint a committee to investigate possible problems with its
accounting in its parent earnings for the year ended March 2014.
Tomony Holdings Inc soared 6.8 percent after it
said it is considering buying MUFG affiliate Taisho Bank.
The Nikkei business daily earlier reported that Tomony will
bring Taisho Bank into its fold as early as next spring,
becoming the first regional banking group with a presence in
Shikoku and the Kansai region.
The broader Topix dropped 0.5 percent to 1,556.69
and the JPX-Nikkei Index 400 shed 0.5 percent to
14,141.23.
(Editing by Kim Coghill)